Tranfer of Assets back to SEPP account

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L1: Tranfer of Assets back to SEPP accountI have been taking SEPP since 2001.(I have 2 more years until I turn 591/2 in 2010).Fidelity Investments is my IRA custodian, and the original allocation was 400,000 in that account.In 2004, I purchased 2 100,000 SPDA Genworth Financialannuities for 6 yearsfrom Fidelity Investments from this account. (This was when interest rates were 1%; the annuities provided higher rates, 5%, 4%, 3% thereafter).The remainder or balance of this account is in cash and CD’s where my SEPP comes outof monthly.The SPDA annuities at Genworth Financial are worth 232,000, minus the surrendercharge. Through Fidelity Investments, I recently did a direct IRA transfer of assetsback to my SEPP account. ( Iwant the FDIC insurance).Since this money emanated from the original allocation or account of 400,000 in 2001,will this transaction be OK, or will this cause any problems?SV2008-10-20 15:02, By: sv, IP: [208.178.240.181]
L2: Tranfer of Assets back to SEPP accountI am not sure from your post whether the SPDA investments were purchased in your Fidelity custodial account or transferred out to a new IRA account in which the SPDAs were purchased. Either way, you should be OK as long as these transfers have been limited to IRA accounts within your SEPP universe. This means that any new IRA accounts had no prior balance, and no new funds were rolled or contributed to any of these accounts from accounts outside of your SEPP plan.I am curious about the surrender charge, however. Is this charge just deducted from the balance of the SPDA prior to termination? If not, how is it being handled?2008-10-20 17:40, By: alan+s., IP: [24.116.165.60]

L2: Tranfer of Assets back to SEPP accountFrom Fidelity Custodial IRA (SEPP) —-Transfer of Assets (100,000 each, 1 week apart) to 2newIRA SPDAaccountsat Genworth.My SEPP universe is comprised of 3 IRA accounts.— Fidelity Custodial IRA (SEPP) account.— 2 new IRA SPDA accounts at Genworth.— These transfers have been limited to IRA accounts within my SEPP universe.— Any new IRA accounts had no prior balance.— No new funds were rolled or contributed to any of these accounts from accountsoutside of my SEPP plan.The surrender charge is deducted from the balancesof the SPDA’s prior to termination.SV2008-10-21 13:04, By: sv, IP: [208.178.240.157]

L2: Tranfer of Assets back to SEPP accountSV:I have read and re-read all posts and I’m not clear on one point: Have you already surrendered the two annuities or are you contemplating surrendering them?If you still have the annuities then consider transferring them into your Fidelity IRA … I assume you are on a “brokerage platform.” I understand your concern for FDIC protectionbut it’s probably not worth having, given the amount of surrender charges you will incur and the relative strength of Genworth. (I’m also assuming these are “Fixed Annuities” and not “Variable Annuities.”) If fixed annuities then the value won’t go down due to stock market action. If you transfer them… not surrender …into the Fidelity IRA account, then you can take the income from the annuities without surrender chargeand let it accumulate in the money market fund (these are now insured by The Government) within the account and become part of your SEPP distributions or be available for other investments as you see fit.If you have already surrendered the annuities, the above is just academic and you can forget it.Jim2008-10-21 13:41, By: jim, IP: [70.167.81.119]